A top exchange-traded fund provider is betting on the long-term popularity of GLP-1 weight loss drugs.
Roundhill Investments’ GLP-1 & Weight Loss ETF (OZEM), which began trading last week, pairs leaders Eli Lilly and Novo Nordisk with players developing new treatments for weight loss and diabetes. CEO Dave Mazza said his firm is capitalizing on explosive growth potential in the industry.
“The ability to have active management to overweight companies that are actually in market producing the drugs and then go down the line to identify those that are in particular phases is powerful,” Mazza told CNBC’s “ETF Edge” last Monday.
Eli Lilly and Novo Nordisk each hold a roughly 20% weighting in the ETF, per Roundhill’s website as of Friday. The three next largest positions are Zealand Pharma, Amgen and Chugai Pharmaceutical, each of which have a weighting under 5%.
In the past year, Eli Lilly is…
